Agendas are available on the City Website
https://www.ridgecrest-ca.gov/council-agendas
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
AGENDA
December 21, 2022
Regular Session 6:00 p.m.
City Hall, Council Chambers
100 100 West California Avenue
Ridgecrest CA 93555
Ricca Charlon, City Clerk
(760) 499-5002
In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability-related modification or accommodation to participate in the meeting, please contact Ricca Charlon at (760) 499-5002. Requests must be made as early as possible and at least one full business day before the start of the meeting.
Documents and material relating to open session agenda items that are provided to the full City Council prior to a regular meeting will be available for public inspection and copying at City Hall.
City Council agendas and corresponding writings of open session items are available for public inspection at the following locations:
1. City of Ridgecrest City Hall, 100 W. California Ave., Ridgecrest, CA 93555
2. City of Ridgecrest official website at https://ridgecrest-ca.gov/212/City-Council
CITY COUNCIL
Eric A. Bruen, Mayor
L. Scott Hayman, Mayor Pro Tem
Solomon P. Rajaratnam, Vice Mayor
Kyle Blades, Council Member
Peggy Breeden, Council Member
John ‘Skip’ Gorman, Council Member
Elect
Ron Strand, City Manager
Keith Lemieux, City Attorney
Martin Koczanowicz, City Attorney
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City of Ridgecrest Public Meeting Protocol
In Response to Coronavirus (COVID-19)
City of Ridgecrest Council meetings are OPEN to public attendance. Although Chambers are OPEN, public participation is still encouraged via live streaming, call-in or via written correspondence.
TO PARTICIPATE please call, email, or send mail to the contact info provided below:
The public may use one of the following alternatives for participating in person:
Watch meetings on-line:
All of our meetings are streamed live at https://ridgecrest-ca.gov/369/Watch or on YouTube at https://www.youtube.com/cityofridgecrest/live and are also available for playback after the meeting.
Call in for public comments:
To participate with verbal comments, please call (760) 499-5010. This phone line will allow only one caller at a time, so if the line is busy, please continue to dial. We will be allowing a 20-30 second delay between callers to give time for media delays and callers to dial in. If you wish to comment on multiple items you will need to call in as each item is presented. Submit written comments:
We encourage submittal of written comments supporting, opposing, or otherwise commenting on an agenda item, for distribution to the City Council prior to the meeting.
Send emails to [email protected]; written correspondence may be sent to Ricca Charlon, City Clerk, 100 W. California Ave., Ridgecrest, CA 93555. Please specify to which agenda item your comment relates. All communication, whether it is a formal letter or an online informal email, is read by the City Council.
Please click on the link below to access the City Council Agenda, Minutes and Video web page. https://ridgecrest-ca.gov/212/City-Council
If you have any questions please contact us.
Ricca Charlon, City Clerk
Phone: (760) 499-5002
*Revised February 24, 2021
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RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
AGENDA
Wednesday, December 21, 2022 Regular Session – 6:00 p.m.
CALL TO ORDER
ROLL CALL
APPROVAL OF AGENDA
REGULAR SESSION
• Pledge Of Allegiance
• Invocation
CONSENT CALENDAR – All Matters Listed Under The Consent Calendar Are To Be Considered Routine And Enacted By One Motion Unless Pulled By A Council Member Or A Member Of The Public.
1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated December 7, 2022 Charlon
2. Proposed Action To Adopt A Resolution Of The Ridgecrest City Council Reciting The Facts Of The Consolidated General Municipal Election Held On Tuesday November 8, 2022 Declaring The Results And Such Other Matters As Provided By Law Charlon
PRESENTATION
3. Presentation To Outgoing Council Member Breeden Staff
4. Administration And Presentation Of Certificates Of Election And Oaths Of Office To Newly Elected Mayor And Council Members Charlon
5. Fiscal Health Update Freese
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA - Persons wishing to address the Council on matters that are within the Council’s jurisdiction and DO NOT ALREADY APPEAR ON THE AGENDA, may do so at this time.
COUNCIL ANNOUNCEMENTS/DIRECTION
ORDINANCES
6. Second Reading And Adoption, By Title Only, Ordinance 22-06, Adding Division 3 To Article III Of Chapter 9 Of The Ridgecrest Municipal Code Imposing A Transactions And Use (Sales) Tax Locally Controlled For City Services To Be Administered By The State Board Of Equalization (November 8, 2022 Ballot) Strand / Attorney
AGENDA - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 21, 2022
DISCUSSION / ACTION ITEMS
7. Nomination And Appointment Of Mayor Pro-Tempore And Vice Mayor Bruen
8. Discussion Regarding Needed Appointments To Council Committees, Boards, And Commissions Charlon
9. A Resolution Of The City Council Of The City Of Ridgecrest Authorizing The City Manager To Execute Agreements With The California Department Of Tax And Fee Administration For Implementation Of A Local Transactions And Use Tax Freese
10.A Resolution Of The City Council Of The City Of Ridgecrest Authorizing Examination Of Sales Or Transactions And Use Tax Records Freese
11.Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman
COMMITTEE REPORTS**Committee Meeting dates are subject to change and will be announced on the City website
Economic Development Committee
Members: Kyle Blades and Solomon Rajaratnam
Meeting: 2nd Wednesday of the Month @ 5:00 p.m.
Location: City Hall Council Chambers
➢ Report from 12/14/22 – Canceled
Finance Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 2nd Tuesday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 12/13/22 – Canceled
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.
Location: City Hall Council Chambers
➢ Report from 12/14/22
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT:
Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated December 7, 2022
PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
Draft Minutes of the City Council / Successor Redevelopment Agency / Housing Authority / Financing Authority Regular Meeting Dated December 7, 2022 FISCAL IMPACT: None
ACTION REQUESTED: Approve minutes
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: Dec. 21, 2022
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RIDGECREST CITY COUNCIL
SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY
HOUSING AUTHORITY
DRAFT MINUTES
Wednesday, December 7, 2022 Regular Session – 6:00 p.m.
CALL TO ORDER – 6:00 p.m.
ROLL CALL
Council Present: Mayor Eric A. Bruen; Vice Mayor Solomon P. Rajaratnam; Mayor Pro Tem L. Scott Hayman; Council Member Peggy Breeden; Council Member Kyle Blade
Absent: None
Staff Present: City Attorney M. Kozanowicz; City Manager Strand; City Clerk Charlon; Chief McLaughlin; PW Director Reed
APPROVAL OF AGENDA
• Hayman - Blades 5 Ayes
NOTE: The vote is displayed in bold below each item. For example, Blades-Rajaratnam denotes Council Member Blades made the motion and Vice Mayor Rajaratnam seconded the motion. Ayes, Noes, Absents, Abstentions follow.
REGULAR SESSION
PRESENTATION
Employee Service Award Presentations Council
PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA
Public Comment E. Balfour
COUNCIL ANNOUNCEMENTS/DIRECTION
CONSENT CALENDAR
1. Proposed Action To Approve Draft Minutes Of The Ridgecrest City Council Regular Meeting Dated November 16, 2022 Charlon
2. Review And Approve Recognized Obligation Payment Schedule (ROPS) 2023-24 And Administrative Budget For Fiscal Year 2023-24 Of The Successor Agency To The Ridgecrest Redevelopment Agency And Approval Of Resolution Freese
• Rajaratnam - Breeden 5 Ayes
DISCUSSION / ACTION ITEMS
Public Comment on items 3, 4 & 5 - None
3. A Resolution To Accept The Base Bid (Sch. A+B) As Submitted By Bowman Asphalt, Inc. Accept Additive Alternative Schedule “D” For High Tensile Asphalt Reinforcement Fiber, And Deny The Base Bid Option (Sch. A+C) For Utilization Of Reclaimed Material. Allocate Measure V Funds For The Base Bid, And Up To $139,310.20 For A Ten Percent (10%) Construction
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 7, 2022
Contingency. A Maximum Total Of Up To $1,532,412.20. Award A Construction Contract To Bowman Asphalt, Inc. To Construct The Franklin Ave. Street Improvement Project In The Amount Of One Million Three Hundred And Ninety-Three Thousand One Hundred And Two Dollars ($1,393,102.00), And Authorize The City Manager, Ronald Strand, To Execute The Contract Reed
• Blades - Hayman 5 Ayes
4. A Resolution To Accept The Base Bid As Submitted By Pavement Coatings Co. Allocate Measure V Funds For The Base Bid, And Up To $58,938.00 For A 5% Contingency. A Maximum Total Of Up To $1,237,698.00. Award A Construction Contract To Pavement Coatings Co. To Construct The FY22 Measure V Chip Seal Project In The Amount Of One Million One Hundred & SeventyEight Thousand Seven Hundred Sixty Dollars ($1,178,760.00); And Authorize The City Manager, Ronald Strand, To Execute The Contract Reed
• Hayman - Blades 5 Ayes
5. A Resolution To Accept The Base Bid, Schedule A&D, As Submitted By Griffith Co. Deny Additive Alternate Schedules B&C; Allocate Measure V Funds For The Base Bid, And Up To $230,572.26 For A 5% Contingency. A Maximum Total Of Up To $4,842,017.41. Award A Construction Contract To Griffith Co. To Construct The FY22 Measure V Paving Project In The Amount Of Four Million Six Hundred & Eleven Thousand Four Hundred Forty-Five Dollars And Fifteen Cents ($4,611,445.15); And Amend A Construction Engineering Agreement With Willdan Engineering In The Amount Of One Hundred And Eight Thousand Dollars ($108,000.00); And Authorize The City Manager, Ronald Strand, To Execute The Contract & Amendment Reed
• Breeden - Rajaratnam - 5 Ayes
6. A Resolution To Accept The Base Bid As Submitted By EverLevel Holdings Inc. Allocate Wastewater Enterprise Funds For: The Base Bid, A Ten Percent (10%) Contingency ($629,423.50) And A Construction Engineering Contract With Willdan Engineering ($314,908.00). Award A Construction Contract To EverLevel Holdings To Construct The Phase II Sewer Project In The Amount Of Six Million Two Hundred And Ninety-Four Thousand Two Hundred And Thirty-Five Dollars ($6,294,235.00), And Authorize The City Manager, Ronald Strand, To Execute The Contract Reed
Public Comment - None
• Blades - Rajaratnam 5 Ayes
7. Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) Hayman
DRAFT MINUTES - CITY COUNCIL / SUCCESSOR REDEVELOPMENT AGENCY / FINANCING AUTHORITY / HOUSING AUTHORITY REGULAR – December 7, 2022
PUBLIC HEARINGS
8. A Public Hearing And Resolution Approving The Fiscal Year 2023-2024 Annual Application Regarding The Kern County Community Development Block Grant (CDBG) Program Wegener o Open Public Hearing – 7:34 p.m.
o Staff report & application reviewed
o Public comments – none
▪ July 4th & 5th page 2 of application
o Close Public Hearing – 7:43 p.m.
• Rajaratnam - Breeden 5 Ayes
COMMITTEE REPORTS**Committee Meeting dates are subject to change and will be announced on the City website
Infrastructure Committee
Members: Solomon Rajaratnam and Kyle Blades
Meeting: 4th Thursday each month at 5:00 p.m.
Location: City Hall Council Chambers
➢ Report from 11/24/22 - CANCELED
City Organization and Services Committee (‘City Org’)
Members: Mayor Eric A. Bruen and Peggy Breeden
Meeting: 1st Thursday each month at 5:30 p.m.
Location: City Hall Council Chambers
➢ Report from 12/1/22 – CANCELED
Parks, Recreation, and Quality of Life Committee
Members: Mayor Eric A. Bruen and Scott Hayman
Meeting: 1st Tuesday each month at 5:00 p.m.
Location: Kerr McGee Center Meeting Room
➢ Report from 12/6/22
OTHER COMMITTEES, BOARDS, OR COMMISSIONS
CITY MANAGER REPORT
Workshop: late Jan/early Feb 2023 – Status Of The City Conversation
FUTURE AGENDA ITEMS
MAYOR AND COUNCIL COMMENTS
ADJOURNMENT – 8:25 p.m.
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Approve A Resolution Of The City Council Of City Of Ridgecrest Reciting The Fact Of The Consolidated General Municipal Election Held On Tuesday, November 8, 2022 Declaring The Result And Such Other Matters As Provided By Law PRESENTED BY: Ricca Charlon, City Clerk
SUMMARY:
A General Municipal Election was held on Tuesday, November 8, 2022.
The City of Ridgecrest had one (1) seat for Elected Mayor with three (3) candidates qualified for the ballot; and two (2) seats for Council Member with four (4) candidates qualified to be placed on the ballot.
The election was duly called and noticed in Resolution Nos. 22-51 and 22-52 adopted July 20, 2022, and the City consolidated with Kern County for election services.
Kern County has canvassed the votes and certified the election results. The certification is included as Attachment A.
This Resolution recites the facts of the consolidated General Municipal Election and declares the results.
FISCAL IMPACT: No Fiscal Impact
ACTION REQUESTED: Approve Resolution
CITY MANAGER’S RECOMMENDATION:
Submitted by: Ricca Charlon Action Date: December 21, 2022 This Page Intentionally Left Blank
RESOLUTION NO. 22-Xx
A RESOLUTION OF THE RIDGECREST CITY COUNCIL RECITING THE
FACT OF THE CONSOLIDATED GENERAL MUNICIPAL ELECTION
HELD ON NOVEMBER 8, 2022 DECLARING THE RESULTS AND SUCH
OTHER MATTERS AS PROVIDED BY LAW
WHEREAS, a Consolidated General Election was held and conducted in the City of Ridgecrest, California on Tuesday, November 8, 2022 as required by law; and, WHEREAS, notice of the election was given in time, form and manner as provided by law, that voting precincts were properly established; that election officers were appointed and that in all respects, the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the Elections Code of the State of California for the voting of elections in general law cities; and,
WHEREAS, pursuant to Resolutions 22-51 & 22-52, adopted, July 20, 2022, the County election Department canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part hereof as Exhibit A.
NOW, THEREFORE, THE RIDGECREST CITY COUNCIL DOES HEREBY DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That the whole number of votes cast for Mayor in the City was 7,907.
Section 2. That the whole number of votes cast for Council Member in the City was 12,638.
Section 3. That the names of the persons voted for at the election of Mayor of the City of Ridgecrest full term are as follows:
1. Eric A. Bruen
2. Thomas R. Wiknich
3. John ‘JD’ Zipp (write in candidate)
Section 4. That the names of the persons voted for at the election of Members of the City Council full term are as follows:
1. Christopher Ellis
2. Scott K Miller
3. Loren Scott Hayman
4. John P ‘Skip’ Gorman
Section 5. That the number of votes given at each precinct and the number of votes given in the City to each of the persons above named for the respective offices for which the persons were candidates were as listed in Exhibit A attached.
Resolution 22-xx Page 2 of 2
Section 6. The City Council does declare and determine that Eric A. Bruen was elected as Mayor of the City of Ridgecrest for the full term of two years.
Section 7. The City Council does declare and determine that Loren Scott Hayman was elected as a Member of the City Council for the full term of four years, and that John P ‘Skip’ Gorman was elected as Member of the City Council for the full term of four years.
Section 6. The City Clerk shall enter on the records of the City Council of the City, a statement of the result of the election showing: (1) The whole number of ballots cast in the City; (2) The names of the persons voted for; (3) For what office each person was voted for; (4) The number of votes given at each precinct to each person; (5) The total number of votes given to each person.
Section 7. The City Clerk shall immediately make and deliver to each of the persons so elected a Certificate of Election signed by the City Clerk and authenticated; that the City Clerk or designee shall also administer to each person elected the Oath of Office prescribed in the Constitution of the State of California and shall have them subscribe to it and file it in the office of the City Clerk. Each and all of the persons so elected shall then be inducted into the respective office to which they have been elected.
APPROVED AND ADOPTED this 21st day of December, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________
Eric A. Bruen, Mayor
ATTEST:
__________________________
Ricca Charlon, CMC
City Clerk
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY
FINANCING AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
SUBJECT:
Presentations to Outgoing Council Member Breeden
PRESENTED BY:
Eric A. Bruen – Mayor
SUMMARY:
Mayor Bruen and fellow Council Members will present a proclamation to Peggy Breeden for her service on the Ridgecrest City Council.
FISCAL IMPACT:
None
ACTION REQUESTED:
Presentation Only
CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
Submitted by: Ricca Charlon Action Date: December 21, 2022 This Page Intentionally Left Blank
A Proclamation of
The City of Ridgecrest, California
Honoring Ridgecrest Citizen and
Council Member Peggy Breeden
WHEREAS, Margaret ‘Peggy’ Breeden was appointed to serve on the Ridgecrest City Council as a Council Member and installed on February 24, 2021; and, WHEREAS, throughout her tenure giving generously of her time on various other city committees and organizations vital to this community; and, WHEREAS, Peggy has been an avid supporter of local schools, businesses, and infrastructure needs within the community; and,
WHEREAS, Peggy has worked tirelessly to create new laws and policies that support and improve local government and that help local officials provide better service to our community.
Now, Therefore, Be It Proclaimed, the City Council of the City of Ridgecrest does hereby honor, recognize and extend our appreciation to Peggy Breeden for her devotion and exceptional service to this community and for her dedication to the City of Ridgecrest.
Proclaimed December 21, 2022
Eric A. Bruen
Mayor
L. Scott Hayman Solomon P. Rajaratnam
Mayor Pro Tem Vice Mayor
Kyle Blades
Council Member
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
Submitted by: Ricca Charlon Action Date: December 21, 2022 SUBJECT: Administer Certificates Of Election And Oaths Of Office To Newly Elected Mayor And Council Members
PRESENTED BY: Ricca Charlon – City Clerk
SUMMARY:
City of Ridgecrest conducted a General Municipal Election on November 8, 2022 to elect a new Mayor and two new members to the City Council.
The votes have been canvassed and certified by the Kern County Clerk and the Ridgecrest City Council.
City Clerk, Ricca Charlon, will administer the Oath of Office to newly elected Mayor Eric A.
Bruen and Council Members Scott Hayman and Skip Gorman.
FISCAL IMPACT: None
ACTION REQUESTED:
Administer the Oath of Office to newly elected Mayor and Council Members CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
01351.0001/804064.1
SUBJECT: Second Reading And Adoption, By Title Only, Ordinance 22-06, Adding Division 3 To Article III Of Chapter 9 Of The Ridgecrest Municipal Code Imposing A Transactions And Use (Sales) Tax Locally Controlled For City Services To Be Administered By The State Board Of Equalization (November 8, 2022 Ballot)
PRESENTED BY: Martin Koczanowicz, City Attorney
SUMMARY:
Although the City continues to be a prudent steward of taxpayer dollars and has taken measures to cut costs, the fact is as the cost of providing services continue to increase, so does the need for locally controlled local funding that will stay in Ridgecrest for the City services residents rely on and will not be taken by the state or the county.
This item adopts an Ordinance adding Division 3 to Article III of Chapter 9 of the Ridgecrest Municipal Code imposing a transactions and use (sales) tax of one cent (1¢) within the City of Ridgecrest for a period of nine (9) years.
Over the last year, the City held community discussions and engaged residents through The Ridgecrest Community Conversation to ensure to listen to resident feedback and ensure that the feedback is incorporated as part of the City’s budget process. With nearly 1,000 residents and several community groups engaged, this robust community conversation identified important City service needs and priorities residents want to see prioritized.
Additionally locally controlled funding will allow the City to address infrastructure and facility needs, such as parks, sports fields and recreation centers, which are essential to maintaining Ridgecrest’s quality of life and providing local youth programs, which are essential to keeping kids away from gangs.
Residents also prioritized keeping both Ridgecrest fire stations open full-time, replacing Pinney Pool, continuing to fix potholes on neighborhood streets and City street repair, maintain 911 emergency response times and maintaining recreation programs for all ages.
As the City continues to repair local streets and roads, residents continue to give the feedback that they want these repairs escalated. It is also fiscally responsible to maintain the City’s streets, roads and potholes now, so they don’t deteriorate and become more costly to fix in the future.
The Ordinance follows ballot measure P seeking approval from the electorate to impose the one-cent or 1% sales and use tax – this local funding will keep the tax dollars in Ridgecrest and not the state or the county.
Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
01351.0001/804064.1
The Ordinance will not take effect until 30 days after adoption. First introduced at the July 20, 2022 City Council meeting, and approved by the voters at the November 8, 2022 election; the Ordinance is now placed on the Council agenda for adoption.
The Proposed Ordinance mirrors the language of an existing temporary sales and use tax measure that will be expiring soon. The new tax Ordinance also creates a new Citizen Oversight Committee that is independent from any existing oversight committees. The new oversight committee is appointed by the City Council and is tasked with:
(1) Reviewing all appropriations of revenues received by the city from the sales and use taxes to determine whether such funds are to be used as provided for in the voter-approved measure (2) Reviewing the audit prepared by an independent auditor retained by the city to perform the city's comprehensive annual financial report to determine whether such funds have been spent as provided for in the voter-approved measure; and,
(3)Prepare and issue the committee's own annual report setting forth their findings in regard to the foregoing.
The following two motions are required:
Motion To Waive Reading In Full, Ordinance 22-06 Of The City Of Ridgecrest City Council Adding Division 3 To Article III Of Chapter 9 Of The Ridgecrest Municipal Code Imposing A Transactions And Use (Sales) Tax Locally Controlled For City Services To Be Administered By The State Board Of Equalization (November 8, 2022 Ballot)
Motion To Adopt, By Title Only, Ordinance 22-06 Of The City Of Ridgecrest City Council Adding Division 3 To Article III Of Chapter 9 Of The Ridgecrest Municipal Code Imposing A Transactions And Use (Sales) Tax Locally Controlled For City Services To Be Administered By The State Board Of Equalization (November 8, 2022 Ballot)
FISCAL IMPACT: The Finance Department estimates that the proposed sales and use tax will bring in approximately $5.9 Million annually to the General Fund.
ACTION REQUESTED:
Motions To Waive Reading In Full And Adopt Ordinance 22-06 Of The City Of Ridgecrest City Council Adding Division 3 To Article III Of Chapter 9 Of The Ridgecrest Municipal Code Imposing A Transactions And Use (Sales) Tax Locally Controlled For City Services To Be Administered By The State Board Of Equalization (November 8, 2022 Ballot) CITY MANAGER’S RECOMMENDATION: Action as requested.
Submitted by: Ricca Charlon Action Date: December 21, 2022 ORDINANCE NO. 22-06
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF RIDGECREST ADDING TO THE RIDGECREST
MUNICIPAL CODE CONCERNING A TEMPORARY TRANSACTIONS
AND USE (SALES) TAX, LOCALLY CONTROLLED, TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION
WHEREAS, through The Ridgecrest Community Conversation, an extensive community engagement effort over the last year with nearly 1,000 residents and several community groups participating, residents identified local City service needs and priorities they would like addressed; and,
WHEREAS, as the costs of services continue to rise so does the need for locally controlled local funding to allow the City to continue to provide the City services Ridgecrest residents rely on; and,
WHEREAS, residents recently prioritized City services including keeping both Ridgecrest fire stations open full-time, replacing Pinney Pool, continuing to fix potholes on neighborhood streets and City street repair, maintaining 911 emergency response times and preserving recreation programs for all ages; and,
WHEREAS, it is fiscally responsible to maintain City streets, roads and potholes now so they don’t deteriorate and become more costly to fix in the future; and, WHEREAS, the City of Ridgecrest should keep local funding for City services and not allow the state or county to control additional local sales tax funding; and, WHEREAS, addressing infrastructure and facilities needs, such as parks, sports fields and recreation centers, is essential to maintaining the quality of life in the City of Ridgecrest and providing quality youth programs which are essential to keeping kids away from gangs.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF RIDGECREST as follows:
1. Purpose.
This Ordinance adds to the Ridgecrest Municipal Code in order to add a temporary transactions and use tax.
2. Amendment.
The following Division 3 is hereby added to Article III of Chapter 9 of the Ridgecrest Municipal Code to read as follows:
“Division 3 – 2022 TEMPORARY SALES AND USE TAX
Sec. 9-84. Purpose and Operative Date.
(a) The purpose of this Division is to impose a retail transactions and use tax in accordance with the provisions of the Revenue and Taxation Code. Unlike the tax described in Article IV of this Chapter, this tax is set for a fixed term of nine years from the Operative Date. (b) “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance and Division, the date of such adoption being as set forth on the ordinance that adopted this Division. However, if the City shall not have entered
into a contract with the State Board as required herein prior to such date, the Operative Date shall be the first day of the first calendar quarter following execution of such a contract. (c) Prior to the Operative Date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax article; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
Sec. 9-85. Transactions Tax Rate.
Commencing on the Operative Date and continuing for a period of nine years following this date, for the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at a rate of one percent (1%) of the gross receipt of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the Operative Date of this article. Such tax shall be in addition to any other transaction (sales) tax imposed by this Code or applicable state law.
Sec. 9-86. Use Tax Rate.
Commencing on the Operative Date and continuing for a period of nine years following that date, an excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on or after the Operative Date of this article for storage, use, or other consumption in the incorporated territory of the City at a rate of one percent (1%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax, regardless of the place to which delivery is made. Such tax shall be in addition to any other use tax imposed by this Code or applicable to state law.
Sec. 9-86. Establishment of Committee and Purpose.
A Citizens’ Oversight Committee is hereby established to oversee expenditures of the revenues received by the City from the sales and use taxes imposed pursuant to this chapter, and to ensure that tax revenues are spent by the City in a manner consistent with the voter approved measure adopting this chapter as well as any voter approved or council approved priorities adopted to implement the provisions of this chapter. The Citizen Oversight Committee created pursuant to this Division shall be independent of any other existing oversight committee but shall be organized and subject to the provisions of Sections 9-80 through 9-83 of this Chapter.”
3. Effective Date.
This Ordinance relates to the levying and collecting of the City transactions and use taxes and is a valid and binding ordinance of the City upon passage and approval by the electorate of the City of Ridgecrest and adopted by the City. This Ordinance shall be considered as adopted upon the date that the vote is declared by the legislative body, and shall go into effect thirty (30) days after that date.
4. CEQA Exemption.
The adoption of this ordinance is not a "project" subject to the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section §§ 21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to a specific project that may result in a potentially significant physical impact on the environment are not projects subject to the requirements of CEQA.
5. Severability.
If any section, subsection, sentence, clause or phrase of this ordinance or the application thereof to any person or circumstance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The City of Ridgecrest would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional.
6. Determination.
First read and introduced at the July 20, 2022 City Council meeting.
PASSED, APPROVED, AND ADOPTED by the Ridgecrest City Council on December 21, 2022, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Eric A. Bruen, Mayor
ATTEST:
_________________________________
Ricca Charlon, City Clerk
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CITY COUNCIL/SUCCESSOR REDEVELOPMENT AGENCY/
FINANCING AUTHORITY/HOUSING AUTHORITY AGENDA ITEM
SUBJECT:
Nomination And Appointment Of Mayor Pro Tempore And Vice Mayor PRESENTED BY:
Eric A. Bruen – Mayor
SUMMARY:
Upon administration of the oath of office to newly elected Mayor and Council Members, and pursuant to City of Ridgecrest Municipal Code Chapter 2, Article II, §2-25, members are required to make appointments to the positions of Mayor Pro Tempore and Vice Mayor.
Sec. 2-25. - Mayor, vice-mayor, and mayor pro tempore.
(a)The vice-mayor has all the powers and duties of the mayor when the mayor or mayor pro tempore are absent or unable to act.
(b)The council shall meet as soon as new council members take office after a general municipal election to choose one of its members to serve as mayor pro tempore and one of its members to serve as vice-mayor.
Mayor Bruen will accept nominations and conduct a roll call vote of Council Members to select these appointments.
FISCAL IMPACT: None
ACTION REQUESTED:
Nominate and vote for appointments to the positions of Mayor Pro Tempore and Vice Mayor CITY MANAGER / EXECUTIVE DIRECTOR RECOMMENDATION:
Action as requested
Submitted by: Ricca Charlon Action Date: December 21, 2022 This Page Intentionally Left Blank
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: Discussion Regarding Needed Appointments To Council Committees, Boards, And Commissions
PRESENTED BY: Ricca L. Charlon – City Clerk
SUMMARY:
On November 8, 2022 a General Municipal Election was held in the City of Ridgecrest where one Mayor and two Council Members were elected.
Pursuant to Municipal Code Chapter 2, Article VI, § 2-213, Committee members shall be appointed by the mayor with the advice and consent of the council. There are standing council committees, boards, and commissions that require appointments, these are listed below.
Each Council Member is to make a citizen nomination to serve on the following:
• Planning Commission
• Personnel Commission
• Handicap Appeals Board
• Construction Appeals Board
• Measure V
Council Members will hold discussions and decide who among them who would like to serve on the following:
• Finance Committee
• Economic Development Committee
• City Organization and Services Committee
• Infrastructure Committee
• Parks, Recreation and Quality of Life
• Youth Advisory Council
• Ridgecrest Area Convention and Visitors Bureau (RACVB) • Quad State Local Government Authority
• Kern Council of Governments
• Navy Community Council
• IWV Groundwater Authority
• East Kern Air Pollution Control Board
• League of California Cities
• Round Table/BLM
• EAST Kern EDC
FISCAL IMPACT: None
ACTION REQUESTED: Appoint Members To Committees, Boards, And Commissions CITY MANAGER’S RECOMMENDATION:
Submitted by: Ricca Charlon Action Date: December 07, 2022 This Page Intentionally Left Blank
Commissions, Board, & Committees Mayor Eric A. Bruen Skip Gorman L. Scott Hayman Solomon P. Rajaratnam Kyle Blades Planning Commission
(Each Council Member nominates a commissioner) Juan 'Bernie' Mondragon Megan Richter Vanessa Hayman Warren Cox Bill Farris Jr.
Personnel Commission
(Each Council Member nominates a commissioner) Dana Griffin Mike Avery Reg Johnson Roger Ussery Bill Farris Jr.
Construction Appeals Board
(Each Council Member nominates a commissioner) Jerry Griffin Bill Freund Mike Ferguson Ryan Smith Handicap Access Appeals Board
(Municipal Code requires 2 members be physically handicapped, 2 members experienced in construction, and 1 member be a public member
Pamela Gratton Crisian Loya Chris Hill Ryan Smith
Ridgecrest Area Convention & Visitors Bureau (RACVB) (1 Council Appointment & 1 Alternate) Staff - M. McKenzie Rajaratnam Kern Council of Governments (KernCOG)
(1 Council Appointment & 1 Alternate) Blades
Navy Community Council
(Mayor + 1 Council Appointment) Bruen Rajaratnam
IWV Groundwater Authority Hayman Blades
Finance Committee Hayman Bruen
Youth Advisory Council Hayman Bruen
Civilian & Military Affairs Mayor Chief of Police
East Kern County Air Pollution Control Board Blades
Quad State Local Governments Authority Bruen
League of California Cities Blades Bruen
Disaster Council (appointments set by Municipal Code) Mayor/Chair City Manager/Director of Emergency Services
Chief of Police/Asst.
Director of Emergency
Services
Round Table/BLM - last met via phone 12/17/20, previous was 11/19/20 Blades Infrastructure Committee Rajaratnam Blades Planning Commissioner Warren Cox
Planning Commissioner
William Jinkins
City Organization and Services Rajaratnam Bruen Planning Commissioner Vanessa Hayman
Planning Commissioner
Bill Farris Jr.
Parks, Recreation, Quality of Life (includes Senior Advisory Council and Arts Council) Hayman Bruen Planning Commissioner Vanessa Hayman
Planning Commissioner
William Jinkins
Economic Development Committee Blades Rajaratnam Planning Commissioner Bill Farris Jr.
Planning Commissioner
Bernie Mondragon
Measure V (Each Council Member nominates a member) Marshall 'Chip' Holloway Chris Hill John Harper Vu Ngo Holly Farris EAST Kern EDC Staff - M. McKenzie
Kern EDC Bill Farris Jr.
LEGEND:
Needs council member
Needs citizen appointment
Gorman to appoint citizen
Other Emergency Service Personnel as
appointed by the Director of Emergency
Services to fulfill critical functions
updated Sept 2022
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Authorizing The City Manager To Execute Agreements With The California Department Of Tax And Fee Administration For Implementation Of A Local Transactions And Use Tax PRESENTED BY: Cheri Freese, Finance Director
SUMMARY:
On July 20, 2022, the Ridgecrest City Council unanimously placed Measure P – the Ridgecrest Local Services Measure – on the November 2022 ballot for residents’ consideration. On November 8, 2022, City of Ridgecrest voters approved Measure P, enacting a one cent transactions and use tax. Measure P will provide continued local funding for city services, including maintaining fire services, 911 response times, replacing Pinney pool, street repairs, recreation programs, and other City services. Measure P requires accountability including citizens’ oversight, mandatory financial audits, and yearly reports to the community to ensure the funds are spent in a fiscally prudent manner.
The State Board of Equalization requires the adoption of a resolution authorizing the City Manager to execute necessary agreements with the State to set up (Exhibit A) and manage the tax (Exhibit B). Execution of the agreements authorizes the State to be reimbursed up to $175,000 of its preparatory cost to administer the tax which is withheld from future payments to the City.
FISCAL IMPACT: The transaction and use tax is expected to generate approximately $5.9 million annually. Pursuant to Section 7272 of the State Revenue and Taxation Code, the City must reimburse the State Board of Equalization up to $175,000 for preparation for administering the tax.
ACTION REQUESTED: Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute agreements with State Board of Equalization for collection and administration of Measure P.
CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Cheri Freese Action Date: December 21, 2022 This Page Intentionally Left Blank
RESOLUTION NO. 22-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIDGECREST
AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR
IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX
WHEREAS, on July 20, 2022, the City Council approved Ordinance No. 22-51 amending the City Municipal Code and providing for a local transactions and use tax; and, WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and,
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and,
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and, WHEREAS, the Department requires that the City Council authorize the agreements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ridgecrest that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.
ADOPTED AND APPROVED this 21st day of December, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________
Eric A. Bruen, Mayor
ATTEST:
______________________
Ricca Charlon, City Clerk
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Exhibit A
1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Ridgecrest, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
Exhibit A
2 6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
7. Communications and notices may be sent by first class United States mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
___Finance Director_______________________________
___100 W California Ave___________________________
___Ridgecrest, CA 93555__________________________
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF RIDGECREST CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Ronald Strand____________
(Typed Name)
City Manager
(Title)
(Rev. 11/17)
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Ridgecrest has adopted, and the voters of the City of Ridgecrest (hereafter called “City”) have approved by the required majority vote, the City of Ridgecrest Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No.22-51, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
Exhibit B
(Rev. 10/17) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
Exhibit B
(Rev. 10/17) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
Exhibit B
(Rev. 10/17) 4
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail.
Exhibit B
(Rev. 10/17) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
Finance Director________________________________________ 100 W California Ave____________________________________ Ridgecrest, CA 93555___________________________________ Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2023. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
Exhibit B
(Rev. 10/17) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
Exhibit B
(Rev. 10/17) 7
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF RIDGECREST CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Ronald Strand____________
(Typed Name)
City Manager
(Title)
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT: A Resolution Of The City Council Of The City Of Ridgecrest Authorizing Examination Of Sales Or Transactions And Use Tax Records PRESENTED BY:
Cheri Freese, Finance Director
SUMMARY:
Sales tax records are confidential and proprietary in nature. The State Board of Equalization (BOE) grants permission to City governments to examine sales tax records for the purpose of auditing and ensuring payment of all taxes due to the City. The BOE requires an adoption of this resolution before the permission can be granted. The resolution must specify which staff (positions) may examine the records and the specific purpose for which the records may be used.
With the passage of Measure P, the BOE requires a new resolution to be filed to provide access to records for the new local sales tax. The attached resolution serves this purpose and updates the information on file for the existing sales, transaction and use tax records.
The information obtained by examination of Board records shall be used only for purposes related to the collection of City’s sales and transactions and use taxes by the Board pursuant to the contracts between the City and the Board of Equalization.
FISCAL IMPACT: None
ACTION REQUESTED:
Approve a resolution authorizing examination of the City’s sales, transactions and use tax records.
CITY MANAGER’S RECOMMENDATION:
Action as requested
Submitted by: Cheri Freese Action Date: December 21, 2022 (Revised Jan2019)
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RESOLUTION NO. 22-XX
A Resolution of the City Council of the City of Ridgecrest Authorizing Examination of Sales or Transactions and Use Tax Records WHEREAS, pursuant to Ordinance Number 22-06, the City of Ridgecrest (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and, WHEREAS, pursuant to Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and, WHEREAS, the City Council of the City of Ridgecrest deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected by the Department for the City pursuant to that contract; and, WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RIDGECREST HEREBY RESOLVES AS FOLLOWS:
Section 1. That the City Manager, Finance Director, or other officer or employee of the City designated in writing by the City Manager, Finance Director to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.
Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) Tracking and economic development
(b) Forcasting and budget related functions
(c) Detection of misallocations and deficiencies
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.
Section 3. That Hinderliter De Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter De Llamas & Associates
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.
Section 4. That Hinderliter De Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to any petition or appeal for the reallocation/redistribtuion of sales or transactions and use taxes that was filed by Hinderliter De Llamas & Associates on behalf of the City pursuant to the contract between Hinderliter De Llamas & Associates and City. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter De Llamas & Associates:
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
Section 5. That this resolution supercedes all prior resolutions of the City Council of the City of Ridgecrest adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
ADOPTED AND APPROVED this 21st day of December, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________
Eric A. Bruen, Mayor
ATTEST:
______________________
Ricca Charlon, City Clerk
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Ridgecrest City Council
Successor Redevelopment Agency
Financing Authority
Housing Authority
STAFF REPORT
SUBJECT:
Discussion Regarding The Board Of The Indian Wells Valley Groundwater Authority (IWVGA) PRESENTED BY:
L. Scott Hayman, City Council / IWVGA Representative
SUMMARY:
Report and discussion regarding Board meetings of the IWVGA. Including, Board discussion and consideration of issues of importance requiring action by the IWVGA.
FISCAL IMPACT: None
ACTION REQUESTED: Discuss
CITY MANAGER’S RECOMMENDATION: Action as requested
Submitted by: Ricca Charlon Action Date: Dec. 21, 2022
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